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lys-0071 [83]
3 years ago
7

You purchase one IBM July 120 put contract for a premium of $5 (per share). You hold the option until the expiration date when I

BM stock sells for $123 per share. You will realize a ______ on the investment. (Hint: Recall that each put covers 100 shares.)a. $200 profitb. $200 lossc. $300 profitd. $300 losse. $500 loss
Business
1 answer:
Art [367]3 years ago
8 0

Answer: $200 loss

Explanation:

When you purchase an option, you assume that the share price will gain a higher amount that the premium paid. In this case, it did not.

For this put option, you paid a premium of $500 ($5 * 100)

This is because there are 100 shares in each put.

The stock rises to $123 and you decide to sell at this price, you will achieve $300 increase on the shares:

(123 - 120) * 100 = 300

The shares had a gain of $300 but you paid $500, leaving you with a loss of $200 on the investment.

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Answer:

B) induces buyers to consume less, and sellers to produce less.

Explanation:

Taxes are a necessary evil since they always increase the price of the goods and services that consumers buy and decrease the amount of money that producers receive from selling their goods and services. But taxes are necessary and unavoidable.

But once a market assumes all the effects of existing taxes it reaches an equilibrium price that both consumers and producers are satisfied with. If a new tax is levied than the deadweight losses are greater since consumer surplus and producer surplus are both reduced. This will lead to a reduction in the incentive that both consumers and producers have to engage in transactions. Many times consumers will substitute heavily taxed goods for other goods since they feel they are getting more from consuming those goods (consumer surplus). The same happens to producers, many producers will change their heavily taxed goods for other goods.

If the price elasticity of demand or supply of a certain good is large (elastic demand and supply), the deadweight loss will be greater.

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Dmitry_Shevchenko [17]

Answer:

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Scilla [17]

Answer:

Explained below

Explanation:

KSAOs or knowledge, skills, abilities, and other characteristics, are the unique set of criteria required by a hiring agency or company for a particular job.

Henry, being the HR head at AAS Technologies looks for these features in a desirable candidates to find common sync between the job requirements and the capabilities of the candidate. It proves to be an effective method to filter out less desirable job seekers.

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3 years ago
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